Lesson 2 Flashcards
Activities of planning and control
Scheduling, Loading, Monitoring and control, Sequencing
Planning & control
Sales and operations planing (S&OP)
- a multidiscipline process, where all critical functions will agree on an action plan to fulfil strategic goals
Lead time
a span of time required to perform a process
Cumulative lead time
longest planned length of time to accomplish the activity in question
Delivery lead time
the time from the receipt of a customer order to the delivery of a product
Objective of planning and control
to satisfy customer demand and to ensure the availability of resources
what gets planned
material: inventory/stock
capacity: means of production
S&OP in action
sales forecast > order forecast > supply schedule > order schedule
What are questions of priority and capacity of good planning & control system
- what are we going to make?
- what does it take to make it?
- what do we already have?
- what must we get and when?
Top-down planning and control
S&OP > Master scheduling > Material requirements planning > Production activity control & Vendor order management
Master scheduling definition
A detailed planning process that tracks production output and matches this output to actual customer orders
Master scheduling what it does
- makes specific the overall resource levels established by S&OP
- states exactly when and in what quantities specific products will be made
- links production with specific customer orders, allowing the firm to tell the customer exactly when an order will be filled
- informs the operations manager what inventory or resources are still available to meet new demand
Master schedule record
- forecasted demand
- booked orders
- projected inventory level
- production quantities
- units still available to meet customer needs
Forecasted demand
best estimate of the demand in any period
Booked orders
confirmed demand
Master production schedule (MPS)
amount of products that will be finished and available for sale at the beginning of each week
-> the MPS drives more detailed planning activities
Planning horizon
the amount of time the master schedule record or MRP record extends in the future
- longer production and supplier lead time = longer planning horizon
Push system
material is moved as soon as it has been processed
Pull system
material is moved when next stage wants it
